1:00pm (EST)
FedEx (FDX, $86.10, up $1.28)
April 90 calls (FDX100417C00090000, $1.75, up $0.47)
Entry Price: $1.35 (3/1/10)
Exit Target: $2.70
Return: 30%
Stop Target: 60 cents, raise to $1.00
Action: FedEx looks like it wants to push $90 which should get us a double on this trade. We have already raised the stop to take advantage of the pop from today’s gains..
Cree (CREE, $69.24, up $1.41)
April 75 call (CQR100417C00075000, $1.70, up $0.40)
Entry Price: $1.25 (2/26/10)
Exit Target: $1.75, raise to $2.00
Return: 36%
Stop Target: 60 cents, raise to $1.10
Action: Cree continues to show strength and our original target was $1.75 is within spitting distance. We normally don’t push our exit target but it looks like we can get to $2.00. If the call options do reach $2.00 today, sell half the position and let the rest ride.
F5 Networks (FFIV, $58.01, up $2.21)
April 60 calls (FLK100417C00060000, $1.90, up $0.70)
Entry Price: $1.20 (2/22/10)
Exit Target: $2.20
Return: 58%
Stop Target: 55 cents, raise to $1.25
Action: The $58 pre-market “ask” was a signal shares were going higher today. Shares are at a 52-week high and if the calls trade $2.20, sell half.
Berkshire Hathaway Class B (BRK/B, $79.86, down $0.27)
June 100 calls (BPY100619C00100000, $0.15, down $0.05)
Entry Price: $0.50 (2/1/10)
Exit Target: $1.00+
Return: -70%
Stop Target: None
September 100 calls (BPY100918C00100000, $0.45, down $0.05)
Entry Price: $0.95 (2/1/10)
Exit Target: $2.00
Return: -53%
Stop Target: None
Action: The June options have 109 days until expiration while the September calls have 200 days before they expire. Both of these options were cheap out-of-the-money trades so we aren’t worried about the percentage losses. The stock is still near its 52-week highs and we think shares hit $100 in 2010.
Other 2010 Portfolio OPEN positions (2): EMC (EMC, $17.70, up $0.21), Shuffle Master (SHFL, $8.19, down $0.03)
Action: These are trades that are still open in the portfolio that have longer expiration dates but are not worth mentioning until they turn around. This way you know we are still tracking them and we will record the results, accordingly.
EMC is a April call trade while Shuffle Master is a May option trade that we profiled in January 2010.
WATCH LIST SECTION
These trades are NOT recommendations until we send out an alert. These are trades that we like but have not added to the portfolio as an official recommendation because of market conditions. We will not list entry prices because these stocks are on the verge of breaking out or they could sell-off.
Sandisk (SNDK, $31.95, up $2.80)
March 30 calls (SWF100320C00030000, $2.15, up $1.40)
Action: We blew it.
Last Tuesday, these options were at 42 cents and here is what we said:
“We mentioned yesterday these options could fall below 50 cents but we aren’t catching this falling knife today. Shares could fall back to $25-$26 which could offer better entry prices on different options.”
We knew shares looked poised to bust through $30 but we don’t want to chase this one. Congrats to those of you who swung the bat.
Standard & Poor Depositary Receipt (SPY, $111.79, up $1.05)
April 113 calls (SPY100417C00113000, $1.70, up $0.16)
Action: Continue to watch.
Diamonds Trust Series (DIA, $104.03, up $0.73)
March 105 calls (DIA100320C00105000, $0.78, up $0.12)
April 105 calls (DIA100417C00105000, $1.55, up $0.10)
Action: Continue to watch.
PowerShares Exchange Traded Fund (QQQQ, $45.39, up $0.63)
March 44 calls (QQQ100320C00044000, $1.47, up$0.22)
April 45 calls (QQQ100417C00045000, $1.20, up $0.15)
Action: We would love to take on new positions but we have enough trades on our plate for the moment.
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9:35am (EST)
FedEx (FDX, $$84.95, up $0.19)
April 90 calls (FDX100417C00090000, $1.35, up $0.10)
Entry Price: $1.35 (3/1/10)
Exit Target: $2.70
Return: 0%
Stop Target: 60 cents
Action: The call options opened at $1.36 and have traded to a low of $1.32. You should be getting filled at current levels.
**********
9:05am (EST)
NEW TRADE!!!
FedEx (FDX, $$84.76, up $1.58)
Buy to OPEN April 90 calls (FDX100417C00090000, $1.25, up $0.20)
Action: We are going to try to get these options for under $1.40 but FedEx had a good run on Friday. Shares are slightly higher in pre-market trading so set limit prices at $1.30-$1.35 at the open. If we cannot get the options at these prices, try not to pay over $1.45-$1.50 for the calls. If they open over $1.50, DO NOT enter the trade. We will look elsewhere if this is the case.
Current Trades
Cree (CREE, $67.83, up $0.87)
April 75 call (CQR100417C00075000, $1.35, up $0.15)
Entry Price: $1.25 (2/26/10)
Exit Target: $1.75
Return: 8%
Stop Target: 60 cents
Action: Shares of Cree are over $68 in pre-market trading and we are looking for a run to $70+ this week.
F5 Networks (FFIV, $55.80, up $0.43)
April 60 calls (FLK100417C00060000, $1.20, up $0.10)
Entry Price: $1.20 (2/22/10)
Exit Target: $2.20
Return: 0%
Stop Target: 55 cents
Action: The “bid” for F5 is $55 but the “ask” is showing a print of $58 this morning. We would love to see an open at $58. Continue to hold.
Berkshire Hathaway Class B (BRK/B, $80.13, up $0.73)
June 100 calls (BPY100619C00100000, $0.20, flat)
Entry Price: $0.50 (2/1/10)
Exit Target: $1.00+
Return: -60%
Stop Target: None
September 100 calls (BPY100918C00100000, $0.50, down $0.05)
Entry Price: $0.95 (2/1/10)
Exit Target: $2.00
Return: -47%
Stop Target: None
Action: Continue to hold.
Other 2010 Portfolio OPEN positions (2): EMC (EMC, $17.32, down $0.07), Shuffle Master (SHFL, $8.22, down $0.19)
Action: These are trades that are still open in the portfolio that have longer expiration dates but are not worth mentioning until they turn around. This way you know we are still tracking them and we will record the results, accordingly.
EMC is a June call trade while Shuffle Master is a May option trade that we profiled in January 2010.
WATCH LIST SECTION
These trades are NOT recommendations until we send out an alert. These are trades that we like but have not added to the portfolio as an official recommendation because of market conditions. We will not list entry prices because these stocks are on the verge of breaking out or they could sell-off.
Standard & Poor Depositary Receipt (SPY, $110.74, up $0.07)
April 113 calls (SPY100417C00113000, $1.54, down $0.04)
Action: We may use these options again for a quick trade.
Diamonds Trust Series (DIA, $103.30, flat)
March 105 calls (DIA100320C00105000, $0.66, down $0.04)
April 105 calls (DIA100417C00105000, $1.45, flat)
Action: These options mirror the Dow and can be used for a rally.
PowerShares Exchange Traded Fund (QQQQ, $44.76, up $0.16)
March 44 calls (QQQ100320C00044000, $1.25, up$0.08)
April 45 calls (QQQ100417C00045000, $1.05, up $0.05)
Action: If the market does shoot higher, the Nasdaq might lead the way.
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